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Hawaii's College Savings Program
Hawaii's College Savings Program switched program managers in November 2007 from Delaware Investments to Upromise Investments, Inc., which was acquired by Ascensus College Savings in 2013. The program uses Vanguard Funds in its age-based option, four multi-fund fixed options, and two individual-fund options. Accounts can be linked to the Upromise rewards service.
- Program typeSavings
- Inception2002, but substantially changed in November 2007
- State agencyHawaii Department of Budget and Finance and its Director of Finance
- Tax deduction
- Program ManagerAscensus College Savings, with The Vanguard Group as investment manager
- Program distributorAscensus College Savings
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for non-residents
This is a program that will work for many people who fit the "target" profile but contains potentially significant problems or uncertainties that can hurt the unsuspecting investor.
Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.
State residency requirements:None
Who can be a participant/owner in the program?U.S. citizens and resident aliens of legal age, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program:None
Did you know?
529 plan contributions grow tax-free.
Withdrawals are tax-free when used to pay for qualified higher education expenses.
You can contribute as much as you want, as often as you want.
The key is to get started. Enroll today by completing a quick form online.
Maximum contributions:Accepts contributions until all account balances in Hawaii's 529 plan for the same beneficiary reach $305,000.
Age-based investment options:The Age-Based Option contains 4 portfolios of underlying investment strategies. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.View more age-based investment options
Static investment options:Select among 4 multi-fund portfolios (Growth, Moderate Growth, Conservative Growth, and Income) and 2 individual-fund portfolios (Total Stock Market Index and Money Market).View more static investment options
Underlying investments:Vanguard mutual funds.View a full list of this plan's investment options
Underlying fund allocations:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
Fees & Expenses
Enrollment or application fee:None.
Account maintenance fee:$20 annually; none for account owners who are Hawaii residents.
Program management fees:0.75% manager fee; fee includes underlying fund expenses.
Expenses of the underlying investments:Not applicable, included in the program manager fee.
Total asset-based expense ratio:0.75%
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
Hawaii doesn't offer tax deductions
Program match on contributions:None.
State tax deduction or credit for contributions:None.
State definition of qualified expensesThe state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education.
State tax treatment of qualified distributions:Qualified distributions from Hawaii and non-Hawaii 529 plans are exempt.
State tax treatment of rollovers:Hawaii follows federal tax-free treatment.
Does the sponsoring state exclude the value of an account for state financial aid purposes?No
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?No
Does the program have a formal agreement with a rewards program or outside scholarship program?Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
Statutory protection of an account from creditors:UNLOCK PRO
Did you know?
Residents are not limited to investing in their own state's 529 plan.
Another state may offer a plan that performs better and has lower fees.
The 529 plan chosen does not affect which state the student enrolls in.
You can live in New York, open a plan from Nevada and send a student to college in Florida.
The best way to maximize your college savings?
Start early and save often. You can get started today with easy online enrollment.